Wholesale Gas and Electricity prices prices dropped further on Wednesday, although UK storage is down to 73% full. This is still way ahead of where we have historically been, and is not a cause for concern.

We are hopeful that the drops of recent days will continue in the weeks ahead.

Gas: Gas prices were bearish yesterday as the British grid ended the day 18.4mcm oversupplied. UK storage is currently 73% full, with expectations of this to rise due to more storage injections with the oversupplied grid.   Power: Power prices fell yesterday, tracking the gas market whilst a high wind output of 9.8GWs/day pressured the Day ahead prices.   Oil: Oil prices continued to fall yesterday following hopes of a ceasefire in the Middle East. Prices were also influenced by a weak global demand for oil as the EIA downgraded its 2024 demand growth estimate. Whilst demand appears to be falling, supplies are rising as Kazakhstan’s largest oil field produced a record output of 699,000 barrels/day, providing further bearishness on oil prices.   Carbon (EU ETS): The ICE Dec-24 rose to €62.01/t yesterday. The contract is currently trading at €63.14/t.   Carbon (UKAs): The ICE Dec-24 rose to £36.61/t yesterday. The contract is currently trading at £37.69/t this morning.

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